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Implementation of Buy-Back Programs

This paper documents how Swedish firms implemented and executed open-market sharerepurchases over the period 2000 to 2007 by using a unique hand-collected data set withdetailed information of each repurchase transaction. I find that my sample firms have a higherrepurchase fraction in the first half of the repurchase year. Analysis of liquidity of stocksoffers mixed results as the first proxy, turnover, improves in the second half of the program,whereas the Amihud measure of illiquidity indicates lower liquidity. Positive abnormalreturns following approval of the repurchase program is documented and large repurchaseprograms are associated with higher abnormal returns. My multivariate analysis indicates apositive correlation between abnormal return and repurchase size. Finally, I also find thatmanagers in repurchasing firms exhibit market timing skill, a skill which is more pronouncedfor firms with multiple programs. / This version: July 2009

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hgo-128
Creatorsde Ridder, Adri
PublisherHögskolan på Gotland, Avdelningen för Företagsekonomi
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeManuscript (preprint), info:eu-repo/semantics/preprint, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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